If the Mean of an Exponential Distribution Is 2,then the Value

question 140

Multiple Choice

If the mean of an exponential distribution is 2,then the value of the parameter λ is

• A)0
• B)2.0
• C)0.5
• D)1.0

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Definitions:

Probability Distribution

A function in statistics that enumerates all conceivable values and their associated probabilities for a random variable within a predetermined range.

Variance

A measure of the dispersion or spread of a set of values, indicating how much the numbers in the set differ from the mean.

Diversifiable Risk

A risk that can be reduced or eliminated from a portfolio through diversification, not linked to the market's movements as a whole.

Company-Specific

Company-Specific refers to factors or risks that affect an individual company's performance, distinct from broader market or industry factors.